Whether you want to own a new Mercedes Benz or favor a specific Porsche model, you may imagine yourself driving a sleek and upscale vehicle on the road. Unfortunately, you may feel limited with your finances and aren’t sure how you can afford the vehicle of your dreams. If you want to finance a new car that you seek to own, there are a few options to consider to ensure you can get the keys in your hands.
1. Lease the Vehicle
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One of the most common ways that drivers purchase a car they can’t afford is by leasing the vehicle. Leasing means you can pay a lower payment each month and enjoy having the cost of maintenance and repairs included in the vehicle. The lease can last an average of 24 to 48 months, depending on how long you want to use the car.
An additional benefit of leasing is that you don’t have to put a large down payment. Some dealerships will even allow you to lease without a down payment required to ensure it’s an affordable deal.
2. Save for a Large Down Payment
Consider spending a few months to save for a large down payment for the car of your dreams. This can lower your monthly payment on the vehicle and make it more affordable to ensure it fits within your budget.
3. Buy a Used Model
Consider buying a used model instead of a new car, which will mean you can get a better deal and own a vehicle that has already depreciated. Buying a car that is only one or two years old can allow it to still feel new without exceeding your budget.
4. Get a Longer Term
When you decide to finance your dream car, obtaining an auto loan with more than 60 months can make the payment lower because the balance that you owe is spread out over a longer period of time. This will cause you to pay a slightly higher interest rate but can make owning your dream car a reality.
5. Lease to Own
Lease to own options are also available through car dealerships and allow your monthly payment to be used towards equity that is used toward the car. This is a great option if you’re not sure how long you want to own the vehicle and can give you the freedom to return the car to the dealership if you change your mind and want to purchase a different model.
6. Obtain a Loan from a Credit Union
If you’re a member of a credit union, an auto loan from the financial institution can allow you to obtain lower interest rates that make your dream car more affordable. Credit unions are known for offering flexible terms with their loans, which can make it a better deal.
7. Trade in Your Vehicle
By trading in a vehicle that you already own, it can allow you to put thousands of dollars towards a new car and will significantly offset the cost of your purchase. Consider getting your car detailed and performing any minor repairs that are needed to ensure the car is valued higher and allows you to obtain lower monthly payments with your new auto loan.
8. Use Your Mortgage
Some people even choose to use their mortgage to finance their new vehicle. Your mortgage is likely less than the interest rate you’ll get with an auto loan. Consider refinancing your house and taking cash out to buy the car you’re looking to own. It will negate the need to obtain another loan and can allow you to save more money in interest over time. If you pay the dealership in cash, it can allow you to have more negotiating power to ensure you can get a better deal.
When you’re looking for Brisbane Car Finance deals, Chattel Mortgages are also extremely common and are used for business purchases. They come with lower interest rates and can often be a tax deduction.
By learning about the different finance options available, it can allow you to find the best way to finance your dream car to ensure it works for your budget. You can enjoy spending more time on the road and showing off your car as you get around.